OCR Text |
Show UTAH 307 PRESS ASSOC 200 S 4006 U SUITE SALT LAKE CITY UT 84101-12- 77 i EUREKA, UTAH December 21, 2001 jNiaety-Sf- a Number 51 Price $.40 opens too NEW YORK- - Andre J. Douchane, President and Chief Officer of Chief Operating Consolidated Mining Co. summarized the following events and accomplishments of the company that were reported to shareholders attending the annual meeting in New York City. The Douchane explained, investpreparatory work and ments made in fiscal 2000 and 2001 have enabled us to put Trixie Mine in production and recommission our mill which has begun processing the stockpiled ore at a rate of 100 tons per day. We anticipate having gold for sale in the next several weeks. The Trixie Mine is in production and the mill has begun processing the stockpiled ore at the initial rate of 100 tons per day. Gold will be sold in the next few weeks. 3,500 tons of high-gragold ore have been stockpiled and the stockpile is being added to every de day. This ore contains approximately 1.7 ounces of gold per ton. The extimated cost to produce is approximately $200 per ounce of gold which will decline to about $170 per ounce as volume increases. Chief Con will be profitable in the fust calendar quarter of 2002. The funds generated will enable additional exploration to begin in the Trixie Mine area, the eastern Tintic gold zone and Homansville area. These are areas where prior copy I exploration indicated the potential presence of additional high-gragold deposits. Now that die mill is working. Chief Con is in contract with a potential joint venture partner who owns a promising surface gold mine. The joint venture proposal is for Chief Cons management to manage the mine and the mill to process the precious metals. This mine is about 40 miles from Chief Cons mill. The profits would be split. Discussion and negotiations continue on the Burgin Mine water allocation application at the request of the protesting water companies. While these talks continue to what we believe will be a successful conclusion, alternative methods of dewatering the Burgin ore body and providing water for real estate development are jeing explored. The alternatives will allow development of these properties independent of the thermal-salin- e water desalinization project aid without in anyway diminishing the prospects of the project. The conversion of the thermal saline water to potable water through a reverse osmosis process is an expensive project with an estimated capital cost of $100 million. US Filter expressed its continued interest in partnering on this project as recendy as November 20, 2001 in a letter where they state: We at US Filter de want to work with you and partner with Chief Con to commercialize the water at your world class Bergin Mine site. A leading real estate development firm completed a strategic development analysis of Chiefs Utah land holding and concluded that the potential for successful development was significant. The results of this analysis and the availability of alternative sources of water for the project allow the aggressive development of this real estate project to begin. Douchane concluded, "These are exciting times! Chief Consolidated Mining has been publicly traded since 1909 and Chiefs best days are ahead. "I am gratified to have been selected to lead this company at this time. I feel our companys potential is great. This story contains statements wich are not historical facts, such as anticipated production, exploration results and projections and therefore are "forward-lookin- g statements within the meaning of the Private Litigation Reform Act of 1995, and involve a number of risks and uncertainties that could cause actual results to differ materially from those projected, anticipated, expected or implied. These risks and uncertainties include, but are not limited to, the following: the Company is unable to continue mining due to cash insufficiency; the gold and silver values do not support the profitable operation of the Trixie Mine or mining from the Trixie Mine is not commercially feasible. Refere to the Companys B form for the year ended December 31, 2000 and its form for the quarterly period ended June 30, 2001 filed with the Securities and Exchange Commission. 10-KS- 10-QS- B Eureka Elementary gives over $400 to Sub-for-Sa- nta Carol Ann Duncan, Principal at Eureka Elementary, was excited to present a check for $461.80 to Lloyd Conder, President of the Eureka Elks Lodge, to help with their Sub for Santa program. Some students saved pennies for months, others donated all their allowance for the past month, and others emptied all their pockets several times. This spirit of giving and helping those in need is a quality that will take them far in life. The students are great examples for all those around them. We wish you all Happy Holidays. Carol Ann Duncan, Principal at Eureka Elementary, is shown here presenting a check to Lloyd Conder, President of the Eureka Elks Lodge, to help with their Sub for Santa program. |